Homeownership remains the key to building wealth. But a new study from the National Association of Realtors highlights that substantial inequalities have persisted over the past decade along racial and income lines.
Since 2012, home valuations have been higher for high-income homeowners than for low-income homeowners.
According to the report, middle-income homeowners have earned $122,100 in property value 68% over the past decade. A low-income homeowner could have built $98,900 in wealth at the time from rising house prices alone, while high-income households saw him gain $150,800.
In this study, households were considered low-income if they earned less than 80% of the regional median income. A middle-income homeowner is a homeowner with an income above her 80% and below 200% of her regional median income. A high-income homeowner is a homeowner whose income exceeds her 200% of the median income in the area.
NAR Chief Economist Lawrence Yun said: “Monthly mortgage payments are often viewed as a compulsory savings account that helps homeowners build a net worth of about 40 times the renter’s net worth.”
Profits for black homeowners are small
I’m having a hard timeyou know For black homeowners to get the same wealth in home ownership as other groups. The black homeowner experienced the smallest wealth increase of any other racial or ethnic group in the past decade, where he amassed $115,000 in assets. A black American owns her home for nearly $64,000 less than a home owned by a white American.
Asian households own more expensive homes than any other group, but Hispanic homeowners were rated faster than white homeowners.
But there have been some parts of the country where Black homeowners have fared better in the past decade, including Bellingham, Washington. Ocala, Florida. Palm Bay, Florida. Modesto, California. Greeley, Colorado. and Charleston, South Carolina. The owner of these neighborhoods has confirmed that the home has generated more than his $125,000 in wealth over the past decade.
Owners of minority groups were able to accumulate the greatest wealth in the western and southern regions. In some of these areas, median home prices for black homeowners are $500,000 higher than he was a decade ago, including Bremerton, Washington. Santa Maria, California. City of Lake Havasu, Arizona.
Regardless of income level, owners in expensive cities experienced the most increases in house prices and wealth.
In San Jose, one of the most expensive cities to buy a home in, low-income owners have amassed about $630,000 over the past decade, while middle-income owners earned $643,000. . The top earner earned his $836,490 wealth from home.
In addition to increasing wealth accumulated over the past decade, homeowners have also reduced their debt by 21%. Many homeowners who refinanced in the months after the pandemic hit and were able to secure interest rates below 4% may have paid off more on their mortgages, Yun said.
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https://www.mercurynews.com/2023/04/19/black-homeowners-had-the-smallest-wealth-gains-over-the-past-decade/ Black homeowners had the least wealth gains in the past decade, outside of San Jose and those cities in California